Additional Coverage:
- Hotel operators say they’re bleeding cash in the hundreds of millions and need the government shutdown to end now (businessinsider.com)
Local Hotels Feeling the Pinch as Government Shutdown Continues
Our City, USA – As the government shutdown stretches into its third week, local hotels are reporting significant financial losses, with a major industry group estimating a staggering $650 million hit nationwide. This economic uncertainty is casting a long shadow over what is typically a bustling holiday travel season.
The American Hotel and Lodging Association (AHLA) released a statement Wednesday highlighting the “devastating impact” the shutdown is having on travel and hospitality sectors across the country. Rosanna Maietta, President and CEO of the AHLA, expressed concern that “economic uncertainty and waning consumer confidence are translating into booking cancellations and discouraging future planning.”
The AHLA, joined by 30 other hospitality associations, has sent an urgent letter to congressional leaders, including House Speaker Mike Johnson, House Minority Leader Hakeem Jeffries, Senate Majority Leader John Thune, and Senate Minority Leader Chuck Schumer, imploring them to reach a budget agreement and reopen the government immediately. The letter represents properties in at least 28 states and Puerto Rico, underscoring the widespread nature of these financial struggles.
This shutdown, which began on October 1st after a failure to agree on a government budget, has now become the second-longest in US history. Its reach extends far beyond hotels, impacting everything from national parks and the postal service to airport operations. Hundreds of thousands of federal employees are currently furloughed, while others are working without pay, creating a ripple effect of economic strain.
Democratic leaders Schumer and Jeffries have placed the blame squarely on President Donald Trump and the Republican Party, citing a reluctance to protect American healthcare. They maintain that Democrats are ready to find a bipartisan solution but require “a credible partner.”
The aviation industry is also feeling the pressure. Airlines for America, a trade group representing major carriers like United, American, and Delta, issued its own plea on October 1st, warning that the furloughing of federal air traffic management employees would further strain the industry.
As the standoff in Washington continues, local businesses, particularly those in the hospitality sector, are left to weather the storm, hoping for a swift resolution that will allow them to recover and thrive during this critical time of year.